What will logistics invest in 2024? Top 5 logistics trends for increasing profits

In 2023, we conducted over 100 meetings with technology companies shaping logistics trends across Europe. These included leading providers of ERP, TMS, and WMS solutions, freight exchange platforms, and developers of in-house systems used by transport companies. Our goal was to uncover the future direction of logistics and understand evolving customer expectations. From the insights gathered, a clear picture of investment priorities has emerged. While the era of spreadsheets isn’t over yet, the market is clearly signaling significant changes ahead.

Visibility

Senders want to see, analyze, and feel secure. Customers and business partners expect real-time monitoring of shipments, demanding full visibility of their location and status. The development of tracking technology, the Internet of Things (IoT), and data management systems make achieving full visibility a current requirement among major producers. Simultaneously, through such systems, it’s much easier to implement digital document circulation, reducing time spent on widespread ‘paperwork.’ GPS is a must and transport companies aiming for new contracts in 2024 must take this into account.

Integrated, Modular Management Systems

Handling orders, transport exchanges, invoicing, routes, work time, or even cargo space calculations require using multiple tools. Our interviewees, involved in software production, explicitly admit that partnering with a loading planner like Goodloading is much safer than uncertain attempts to create proprietary solutions. System integration is not a novelty, but a customer need, who in 2024 will choose tools that provide greater capabilities and a quick return on investment. Logistics filled with scattered software doesn’t offer the same analytical possibilities as having access to multiple data in one place. It’s worth paying attention to solutions offering a rich portfolio within one system.

Prediction

In 2020, predictive startups mushroomed in the market. After 4 years, these aren’t just promises anymore. Predictive data analysis becomes a key tool in optimizing logistics processes. By using advanced algorithms, alongside basic data from visibility, companies forecast product demand, plan stocks, select vehicles, and delivery routes—all in advance. A proactive approach to inventory management, delivery routes, and vehicle selection helps avoid delays, enhancing the efficiency of the entire chain and estimating costs. Transport companies capable of evaluating their potential to fulfill new orders will also benefit.

Artificial Intelligence

Artificial Intelligence (AI) is omnipresent. Chat GPT opened significant doors, particularly in marketing. In logistics, machine learning and big data bring more benefits. The issue lies in cost because AI often requires significantly greater hardware resources. The AI we encountered is used for route optimization, load planning, inventory management, and analyzing extensive datasets for better market behavior understanding. AI algorithms assist in making faster and more accurate decisions, reducing error risks, and streamlining processes. This technology is already present in management systems, especially those related to point 2. According to us, major market players will utilize this area sooner.

Flexibility

In a dynamic business environment, flexibility becomes a success element. Companies capable of quickly reacting to demand changes by adjusting their strategies and processes cope better with unpredictable market conditions. Flexibility allows faster adaptation to customer needs and changes in the business environment. For a company to utilize flexible logistics, it needs access to extensive data, automated or externally focused processes, and delegating some or all tasks to logistics operators. This aspect mainly concerns production, warehousing, and the immensely popular e-commerce, which analysts predict will grow even faster in 2024 than before.

Summary

Our meetings with technological investors were complemented by discussions with medium and large-sized transport companies. According to us, engagement in these identified trends will become imperative for every medium and large logistics company aiming for higher efficiency levels, better customer service, and a competitive edge in the dynamic business world.

For us, as a producer of load optimization software, it’s crucial not to miss this opportunity and offer extensive integration capabilities. We encourage you to register for free and test the capabilities of the Goodloading system: https://app.goodloading.com/en/auth/register.